CFI.co Blogger, Author at CFI.co Blog

When you have personal goals you want to accomplish, but lack the financial resources to reach them, borrowing money would be a logical step to consider. There’s nothing wrong with going into debt so long as you pay your dues in time and ensure that the money you’ve borrowed is used to fund necessities. It becomes a problem when you’ve found yourself so deep in debt that you have no way of paying back what you owe.

Defaulting on debt takes a heavy toll on your financial future. You may be disqualified from applying for future loans and your financial options become limited when creditors are no longer confident in your ability to make on-time repayments, let alone your capacity for financial responsibility. You wouldn’t want that to happen, especially if you plan on securing a mortgage or paying for medical emergencies. Avoiding a debt default is crucial so here are a few tips to help you steer clear of that:

1. Understand your financial position

The key to avoiding defaulting on your debts is to get a clear picture of how deep a hole you’ve entered. Understanding your current situation will help you make sense of your current earnings and liabilities, allowing you to develop a strategy that will keep you from failing your creditors. Consider the total amount of money you owe to all of the individuals and institutions you’ve borrowed from.

It also matters to consider how much of your monthly income goes to repayments on student loans, your mortgage, as well as your current auto loan. You might be overwhelmed by this, but it’s crucial to help you adjust your spending habits and review debt relief strategies you can opt for.

2. Come up with a budget

Considering how severe the amount of debt you owe to several creditors, you may have to consider setting a manageable budget. As you take your earnings into account, consider prioritizing your repayments. The rest of your earnings should go towards essentials as well as a dedicated savings account.

Doing this will help you commit to your repayment schedules without having to sacrifice daily necessities. However, for this to work, you need to build enough discipline and control how much you spend on non-essentials, such as eating out and shopping for new clothes. Unless you have a large enough window in your financial posture, you might as well stay frugal until everything becomes manageable.

3. Opt to negotiate with your creditors

In case you owe too much across multiple lenders, you may still struggle to stay within your budget and keep yourself from spending over and beyond your ceiling. If that’s the case, you can always reach out to your creditors and see if you can get them to reduce your liabilities.

The best case scenario is when they approve to reduce your monthly dues, but this will reflect badly on your credit record. You just have to make the most of the window you’re given or else you’ll push yourself to a corner with no other recourse in sight.

4. Get a professional to walk you through

Most countries would give citizens options to deal with too much debt or suffer the consequences if they still fail to settle their dues. In South Africa, if you’re asking yourself, “what is a garnishee order”, it’s simply a legal right for any creditor to get a portion of your paycheck and deposits through your employer or bank.

You wouldn’t want that or any strategy to happen to you, so it helps if you could undergo a debt review with the help of a financial advisor. This works well if you start missing your repayment deadlines or you have accumulated a higher-than-average debt-to-income ratio.

Endnote

There’s no shame in being in debt, but being on the brink of defaulting could financially paralyze you. Consider these tips and start embracing financial freedom!

Business

6 Tips for Financing Your Business’s Growth

ByCFI.co Blogger

Running a business is a cyclical process of investing and reinvesting. While you aim to maintain a positive profit margin, you should also think about planning for the long term. You wouldn’t want your business to stay stagnant as the competition in your market intensifies and new trends come along.

growth

Having a growth mindset enables you to stay for the long haul, allowing you to build a business that grows beyond borders and penetrates unfamiliar markets. The key to that is financing. You can’t think about growing your business if you don’t have enough to bankroll the development of new products or the construction of branches in other locations. With this in mind, let’s look at a few things to consider as you prepare to put together a plan for exponential growth:

1. Assess your financial needs

You wouldn’t want to come up with a plan that doesn’t take into account the problems and issues you’re facing. Without insight into your present financial situation, you won’t be able to narrow down your strategy for seeking additional resources to fuel your business’s growth. For this reason, consider how much money your business is making minus the amount of money that goes towards operational expenses.

Growing your business won’t be possible at the moment when you’re paying too much to keep it afloat. It also matters if you can conduct financial forecasting wherein you gather past and present financial statements and analyze current market trends. This enables you to determine whether your business will stay profitable within the next year or so.

2. Review your business model

Aside from checking your business’s financial situation, you will also need to take a step back and look at your current business model. Focus on the ways it’s making money and assess its strengths and weaknesses. It’s possible that your business model worked well in the first few months of launching but when faced with market disruptions, it becomes a hindrance to growth and innovation.

In most cases, a complicated business model discourages investors and costs more to maintain. If that’s the case, then you might want to consider changing the entire setup. You don’t have to reinvent the wheel. All it takes is to simplify your business without affecting the value that your products and services bring. This opens you up to new windows for attracting growth capital.

3. Know what growth involves

Increasing your business’s profits is the main objective, but you need to double down on tangible goals. That way, you can allocate resources effectively as you invest in things like a quality workforce or high-end manufacturing equipment.

If your main goal is to recruit the best talents, you may need to offer competitive compensation packages and reach out to services like Triton Canada to help conduct accurate criminal record checks. With such insights, you will have a better understanding of how much financing is needed to accomplish your growth goals.

4. List down possible financing sources

Once you know your business is ripe for expansion, you need to know who and where to reach out for growth capital. The most accessible option is to apply for a business loan. There are lenders offering loans that are meant for expansion activities like building a new facility or purchasing high-end equipment. Shop around for loans that match your financial needs, making sure the terms won’t eat into your profit margins.

Aside from loans, you can also reach out to investors who would offer money to fuel your business’s growth in exchange for a stake in the company. This is the case for venture capital firms that focus on businesses with the potential for long-term success. However, be careful when you’re acquiring growth capital from these investors. There’s a good chance that you would be bought out of the business as it enters its peak.

5. Capitalize on your network

Your business won’t grow past its threshold through capital funding alone. Expansion also relies heavily on how well you can forge partnerships and connections across markets and borders. If part of your growth strategy is to build a presence in another country, then it pays to have growth partners on site who can help you look for local investors who can secure everything you need to get started.

With this in mind, don’t shy away from any opportunity to grow your professional network. Take part in live or online events such as trade shows and conferences where you can introduce your brand and the profitable potential of the products or services it sells. From there, you might as well open up doors leading to grants, investment proposals, and loans with favorable terms.

6. Monitor and assess your business’s trajectory

Once you have put your growth strategy into motion, it’s only a matter of determining whether you’re making the most out of the time and resources you put into your game plan. Tracking your business’s growth is critical to knowing whether your activities yield actual returns or lead you toward massive liabilities.

Consider setting up key performance indicators that allow you to quantify growth. You may want to focus on how well your new branch is attracting new customers. It also helps if you can monitor operational expenses and even social media engagement rates. These indicators will help you analyze your business’s tolerance for growth and make adjustments that will keep your business on the right track.

Endnote

Financing your business’s growth is a process you must undergo if you want to remain a major player in your sector. Consider these tips and give your company the momentum it needs to outgrow the competition!

Budgeting

5 Ways to Get Over Anxiety When Applying for Your First Credit Card

ByCFI.co Blogger

Getting your first credit card is an exciting prospect, as it gives you access to a powerful financial tool that can change the way you manage your finances. That being said, it can be nerve-wracking to wait for the card issuer’s approval. You might start to second-guess whether or not your application will get accepted, much less get a decent credit limit for your first credit card.

To alleviate these worries and increase the chances of your application getting approved, here are some steps you can take before and during the application process.

Do Your Research

Lack of proper information can easily make you feel unprepared about the entire credit card application process, which can prompt more anxiety than necessary. Hence, make sure to do your research before you fill out your first-time credit card application Philippines form. Keep in mind that not all credit cards are the same, so it’s important to know if the one you’re planning to get is truly what you need. Ask yourself, “What do I want out of a credit card?” and start your research from there. Understanding your personal financial goals can build up your confidence as you apply for a credit card.

You should also check if you meet the minimum qualifications and requirements of the credit card you’re applying for as well. For example, most credit card providers require the applicant to be a Filipino citizen between the ages of 21 to 70 years old and have a steady source of income (whether as an employee or as a self-employed individual) for at least 2 years. If you’re too young or have no job experience at all, then it’s best not to apply yet because your application will most certainly be rejected.

Have All the Required Documents On Hand

Most credit cards have the same documentary requirements, such as a valid government-issued ID, a certificate of employment, and a proof of income in the form of payslips, your latest income tax return (ITR) document, or a registration document for your business. Your proof of income is especially important, as it can help the credit card provider determine if you have the capacity to pay. Make sure to prepare all of these documents even before you download or print your application form to make the entire process a little less stressful.

Do note that some credit card providers also allow you to apply with little to no documents required if you have other qualifications. For instance, you can apply for Maya’s Landers Cashback Everywhere Credit Card through the Maya app with no documents required if you have an active Landers membership. So, if you’re already a Landers member and don’t have a credit card yet, this credit card may be a good option for you.

Double Check Your Application

Credit card application forms, particularly the ones issued by traditional banks, can be overwhelming at first glance given how dense they look. This may make you feel anxious or worried that you will make a mistake or miss a detail. To allay those concerns, always double-check your application before sending it. This goes for online applications as well, as it can be just as easy to make typographical errors as you input your details.

Rest assured that there’s no time limit as you fill out the form, so you don’t have to be pressured about doing it quickly. Instead, take your time to understand each required field to avoid making mistakes.

Talk with a Family or Friend Who Owns a Credit Card

After you’ve submitted your credit card application, waiting for the card issuer’s response can make you uneasy. The evaluation can take a while, sometimes a week or even longer, depending on the type of card you’ve applied for. Rather than ruminate over what-ifs, it’s much better to get your facts by talking with a family member or friend who already owns a credit card. They can clue you in on how long the application process usually takes, as well as what other things to expect, such as how the card will be delivered to you and how to activate it. Having a clear picture of how the process goes can help eliminate the uncertainty and make you feel more reassured as you wait for your application’s result.

Don’t Hesitate to Ask Questions

If there’s anything you’re confused about at any point of the application process, don’t hesitate to ask the banking staff or a customer service representative to clarify it for you. After all, it’s much better to know the answer straight from the source than to worry about it for days on end. Even after you’ve gotten approved and have received your card already, rest assured that you can always reach out to your credit card provider for questions. After all, they stand to benefit from you getting the most out of your credit card, as much as you would benefit from it.

While the nervousness that comes with applying for your first credit card is normal and almost inevitable, there are many ways to diminish those feelings. Let the tips above guide you through your first credit card application to make the process less intimidating.

Finance

Revolutionize Your Investments with Automated Trading Solutions: A Guide for Startups

ByCFI.co Blogger

Startups today face a relentless market. Finding an edge is crucial, and often, that edge comes down to efficiency. If you’re part of a growing fintech-focused startup, you’re likely familiar with the constant push to stay ahead. Traditional trading methods simply don’t cut it anymore—human error, slow reactions, and emotional bias all play a role. But there’s a way to change that.

Enter automated trading solutions.

Automated trading systems have been around for a while, but they’ve grown more sophisticated, accessible, and essential for startups looking to sharpen their investment strategies. They can transform the way you approach both short-term and long-term investments. And yes, like it or not, the machines are here to make money fast—but only if you know how to harness their full potential.

So What Exactly Is Automated Trading?

Not as complicated as it sounds. Automated trading solutions allow you to set a predefined set of rules or conditions for buying and selling assets. These platforms take control once set up, executing trades at high speed when certain conditions are met, without the need for human involvement.

Think of it like programming a robot to react instantly to shifting market indices. It eliminates the fear, bias, and emotion from investment decisions—something humans are notoriously bad at avoiding. Instead, decisions are based purely on logic.

No hesitation. No reconsideration. Just execution.

Why Does It Matter for Startups?

There’s a simple truth to startups: resources are tight. You don’t have the luxury of large teams, and spending hours “figuring out” the market just isn’t sustainable. Time is money, especially when you’re trying to scale. Automated trading offers a way to cut back on manual efforts, while still delivering results that a team of human traders could produce—if not better.

Without automation, every trade becomes a manual decision, meaning you or whoever is in charge of investing has to spend valuable time researching, reacting, and balancing strategies. This just doesn’t resonate with the fast-paced, “fail fast, fail often” mantra most startups live by.

Additionally, automated solutions help mitigate risk. Humans panic, markets shift, and then poor decisions follow. Automation allows trades to happen based on data, not on impulse.

Getting the Most From It Without Risking Everything

Here’s the thing about automated trading: it’s not foolproof. Just because it’s automated doesn’t mean it’s a “set-and-forget” solution. There’s still strategy involved. You need to stay on top of trends, and you need to know when to tweak your rules. Following the market without any human oversight is a guaranteed way to get burned eventually.

Start simple. Start by using the automation to complement—not replace—human discretion.

Backtest your strategies. Most platforms enable backtesting, meaning you can simulate how the strategy would have worked based on past data. The market doesn’t behave exactly the same way over time, but if you’re noticing red flags in your simulated results, it pays to revisit your automation setup.
Set risk parameters. There’s no reason why automation should accelerate loss. Make sure you’ve got strong stop-loss triggers in place and that you’re not investing money you can’t afford to lose. The bigger the risk, the bigger the potential burn.
Start small. You’re trying to make an impact, but diving headfirst into full automation can lead to headaches. Scale gradually, testing as you go along. Understand the nuances—nothing replaces learning from real-world experience.

Conclusion

Not every startup is the same, and you need to assess if automated trading aligns with your goals. If you’re bogged down by manual processes, automation will free up time, allowing your team to focus on innovation, strategy, and scaling. However, it requires a degree of trust and regular monitoring to ensure it fits with your general business goals.

The bottom line is this: bringing an automated trading solution into your startup could be game-changing, but success won’t come just by turning on the machine. Plan carefully, and use the time it saves wisely.

The future is automated—but only winners know how to use it right.

Sources:

https://www.investopedia.com/articles/trading/11/automated-trading-systems.asp

https://www.ig.com/en/trading-platforms/algorithmic-trading/what-is-automated-trading

https://www.investfly.com/

Finance

5 Ways to Tell If a Stock is Undervalued

ByCFI.co Blogger

We all look for an opportunity to save money through good deals, whether it is discounted purchases, clearance sales, or buy-one-get-one-free deals. The same is prevalent in stock markets. Investors are always on the lookout for quality stocks at an undervalued price. However, the greatest hurdle for many investors is identifying these undervalued stocks. This article solves this by providing the best ways to tell if a stock is undervalued.

Image from Jason Briscoe on Unsplash — *Image from Jason Briscoe on* *Unsplash*

Low Valuation Ratios

Start by identifying the stocks you are interested in and compare their valuation ratios in relation to the overall market. The bargain could be on your side if the ratios fall under that of the broad market index or industry average.

Some popular valuation ratios to adhere to during your investment analysis include price-to-earnings P/E ratio, enterprise value to EBIT, PEG ratio, and price-to-sales ratio. You can easily analyze these valuation ratios and find undervalued stocks using a stock screener.

Meaningful Decline in the Stock’s Price

If you are still unsure how to find these undervalued stocks, consider checking out those that show significant declines from recent highs. This means you have to narrow down your search to specific stocks that are notably lower than their highs to boost your chances of getting a bargain.

Always check out websites that publish a list of stocks with new 52-week lows. Once you have the lists, research the companies to gain insights into their recent performance, valuation ratios, and whether some insiders are already taking shares. You can also rely on the information provided by reputable stock trading brokers to identify stocks with meaningful declines.

Successful Investors Gobbling Up the Shares

Copying what successful people are doing can land you in a safe place in the world of investing. Professional investors with a significant amount of money in stock investments are required to file with the SEC, disclosing their holdings by the end of each quarter.

Through the filling, you can tell the positions successful investors hold and the kind of stocks they buy, which can inform your next move. While at it, conduct your own research about the stocks before buying. Keep an eye on the market to be informed if the stock price climbs or falls in between filings.

Rise in Purchases by Company Insiders

You can also tell if a stock is undervalued by checking if the company insiders are purchasing the shares. No one knows the business more deeply than the company executives. It is worthwhile to be more keen when you learn they are buying the stock.

The companies file these insider transactions with the Securities and Exchange Commission. You can find the filings on the commission’s website. While executives are usually awarded some shares as compensation, some executives buy shares with their own money, which can be a sign of a good investment.

Pay Attention to Undervalued Sectors

Another way to identify undervalued stocks is to target undervalued sectors. For instance, if the energy sector has stocks that are declining in overall price, you can invest in the declining energy stock that has the potential to grow in the long run. The stock should have a solid cash flow and less debt regardless of the sector-side downturn. This will enable you to reap the rewards of growth when the sector rebounds.

Most investors want to purchase undervalued stocks, but they don’t know how to find them. Not anymore. With these tips, you will be able to make accurate market predictions for your future investments.

Finance

7 Strategies for Diversifying Your Digital Coins Portfolio

ByCFI.co Blogger

When it comes to cryptocurrency investing, diversifying one’s digital coins portfolio is essential. Due to the inherent volatility and uncertainties of the cryptocurrency market, this strategic approach offers a way to mitigate risk and optimize returns. It involves spreading investments across multiple assets and having a secure and reliable wallet for each asset. For example, an individual can keep their Monero coins in a trusted XMR wallet while adopting a similar strategy for the other coin types they own, whether it’s Bitcoin, Ethereum, or something else…

coins

Diversification also allows investors to gain exposure to various market sectors and emerging technologies within the cryptocurrency ecosystem. This broader exposure can capture opportunities for growth across different segments of the market. Whether it’s decentralized finance (DeFi), non-fungible tokens (NFTs), blockchain platforms, or privacy coins like Monero (XMR), diversification enables investors to participate in the diverse array of innovations and developments shaping the digital asset landscape.

In this article, we’ll explore some well-estanlished and effective strategies for building a well-rounded portfolio of digital assets.

Allocate Assets Based on Market Capitalization

One of the fundamental principles of diversification is to allocate your investments across assets of different sizes. In the cryptocurrency market, this translates to diversifying your holdings based on market capitalization.

Large-cap cryptocurrencies like Bitcoin and Ethereum are well-established and often considered less risky, which makes them suitable core holdings in a diversified portfolio. Mid-cap and small-cap coins, on the other hand, may offer higher growth potential but also come with increased volatility. By diversifying across different market capitalizations, investors can balance risk and reward within their portfolio.

Employ Sector-Based Diversification

The cryptocurrency market comprises various sectors, each with its own unique characteristics and growth drivers. Diversifying your portfolio across different sectors can help spread risk and capture opportunities for growth across multiple segments of the market.

Some of the key sectors within the cryptocurrency ecosystem include decentralized finance (DeFi), non-fungible tokens (NFTs), blockchain platforms, interoperability solutions, and privacy coins. When you allocate investments strategically across these sectors, you can gain exposure to different use cases, applications, and technologies. This reduces the reliance on any single sector for portfolio performance.

Include Geographical Diversification

Another strategy for diversifying your digital asset portfolio is to diversify geographically. It involves investing in cryptocurrencies from different regions around the world. This strategy helps mitigate regulatory and geopolitical risks specific to certain jurisdictions and provides exposure to diverse market dynamics.

Take note that cryptocurrency regulations vary significantly from one country to another, and geopolitical events can have a significant impact on market sentiment and asset prices. As you diversify geographically, you can spread your risk and enhance the resilience of your portfolio to global market trends and regulatory developments.

Consider Stablecoins and Fiat Currencies

Including stablecoins and fiat currencies in your portfolio is another way to strategically diversify your portfolio. That’s because it can provide stability during periods of market volatility. Stablecoins are digital assets pegged to fiat currencies like the US dollar, euro, or yen, and they are designed to maintain a stable value relative to their underlying peg.

By holding stablecoins, investors can hedge against cryptocurrency price fluctuations while retaining liquidity for trading or investment opportunities. Additionally, fiat currencies serve as a safe haven asset during market downturns and can be used to seize buying opportunities or manage portfolio risk.

Incorporate Privacy Coins

If you prioritize financial privacy and seek to protect your transactional data from surveillance or censorship, investing in privacy coins is a great option. Privacy coins like Monero (XMR) offer enhanced anonymity and privacy features compared to transparent cryptocurrencies like Bitcoin. Including them in your portfolio can provide an additional layer of privacy protection and diversification benefits beyond traditional cryptocurrencies. It can strengthen the privacy features of your portfolio and mitigate the risk of surveillance or tracking.

Explore Rebalancing Opportunities

In addition to diversifying your digital coins portfolio, another critical aspect of portfolio management is periodic rebalancing. Rebalancing involves adjusting the weightings of assets in your portfolio to maintain desired asset allocation targets. While diversification spreads risk across different assets, market fluctuations can cause the composition of your portfolio to drift over time, leading to unintended exposure to certain assets or sectors. Rebalancing ensures that your portfolio remains aligned with your investment objectives and risk tolerance.

Continuously Monitor and Make Adjustments

While constructing a diversified digital coins portfolio is a crucial first step, the journey doesn’t end there. Continuous monitoring and periodic adjustments are essential to ensuring that your portfolio remains aligned with your investment goals and adapts to changing market conditions.

Remember, the cryptocurrency market is highly dynamic, with prices fluctuating rapidly based on various factors such as market sentiment, regulatory developments, and technological advancements. With ongoing monitoring, it allows you to stay informed about market trends and identify emerging opportunities or risks that may affect your portfolio.

Regularly assessing the performance of your portfolio also helps gauge its effectiveness in achieving your investment objectives. Monitoring key metrics such as overall returns, volatility, and correlation among assets can provide insights into portfolio performance and identify areas for improvement.

Diversifying your digital coins portfolio is a fundamental strategy for managing risk and maximizing returns in the cryptocurrency market. Consider these strategies when spreading your digital assets to achieve a more resilient investment spread. Whether you’re a seasoned investor or new to the world of cryptocurrencies, being proactive in portfolio management can empower you to make informed decisions and to be more confident in navigating the ever-changing landscape of digital asset investing.

Finance

Is Bitcoin’s Resistance to Upgrade a Positive?

ByCFI.co Blogger

Bitcoin refuses to upgrade. It’s not its fault, it has a network of thousands of people that must approve an upgrade. But that doesn’t mean it shouldn’t upgrade. It probably should have by now. And the funny thing about it is reports state Bitcoin upgraded because it’s scared of altcoins taking over. That’s surely like a pitbull being scared of a Chihuahua. Well, they’re pretty scary.

Can you imagine an XRP buy being more expensive than a BTC buy? Below, we’ll explore whether Bitcoin’s resistance to upgrade is a positive.

What Does Upgrading Do?

Upgrading makes everything better. And you can’t ignore digital upgrades. Anything outdated is weak and vulnerable.

Cryptocurrency upgrades enhance a network’s capabilities and vulnerabilities. They can be anything from minor tweaks to significant overhauls.

In essence, upgrades are crucial for maintaining a cryptocurrency’s relevance and competitiveness. For Bitcoin, upgrades are meticulously planned, rejected by the network, planned again, and so on. It’s sensible – there’s no rushing, but at what cost? How vulnerable is the Bitcoin network? Attacks aren’t frequent, but upgrades should be.

The Bitcoin Taproot Upgrade

Bitcoin is upgrading. The Taproot upgrade represented a milestone in Bitcoin’s history, it was one of the most significant updates since it started.

This upgrade was not just a technical enhancement. It was a strategic move to make Bitcoin more competitive against rapidly evolving altcoins. Altcoins are threatening Bitcoin.

The upgrade improved transaction privacy and efficiency and made Bitcoin more appealing for broader use cases. Those include smart contracts. However, the careful and slow approach to this upgrade is typical of Bitcoin.

Such significant upgrades, though infrequent, are vital for Bitcoin to remain relevant as newer and more agile cryptocurrencies emerge.

Why Hasn’t It Upgraded Since?

Bitcoin’s cautious approach to upgrades is its community-driven nature. Major changes require a consensus. Consensus amongst that many people isn’t easy to achieve. There’s no government-style left-wing and right-wing.

This slow pace is a supposed protective measure against hasty decisions. However, this also means that Bitcoin might lag in implementing technological advancements quickly.

This conservative approach to development is its strength. It ensures unmatched security and reliability. Its weakness is it may struggle to adapt to new demands and innovations.

Does Bitcoin Have Scaling Problems?

Bitcoin’s scalability issues are a significant concern. The blockchain’s inherent limitations impact its ability to handle large volumes of transactions efficiently. Have you ever been on the Bitcoin network during a slow period? It’s a nightmare.

The network design has a block size limit and a 10-minute block time, restricting speeds. It needs to change.

Although the Lightning Network and SegWit have provided partial solutions by enabling off-chain transactions and increasing block capacity, they are more like temporary fixes.

The Bitcoin community wants long-term solutions, but reaching a consensus for fundamental changes remains a challenge. They’ll probably never reach an agreement. Think of it like crypto political warfare.

What Other Coins Upgrade and Perform Well?

Many altcoins exhibit agility in upgrading and evolving. They outpace Bitcoin in implementing new features and enhancements. Ethereum is a prime example, and Ethereum 2.0 addressed scalability and energy efficiency through a shift from proof-of-work to proof-of-stake.

Other cryptocurrencies like Cardano and Polkadot also frequently upgrade their protocols. They’re doing well. You’ll always see them on top coins to invest in reviews. These continuous upgrades enable these networks to adapt quickly to changing market conditions and technological advancements – and they’re frequently patched. They’re just safer.

This adaptability contrasts with Bitcoin’s more conservative approach. It highlights how diverse cryptocurrencies are.

What Coins Are Performing Well in 2024

Bitcoin (BTC): As the original cryptocurrency, Bitcoin continues to lead the market with a capitalization of around $656 billion. Despite its price fluctuations – soaring to $48,005 in November 2021 and adjusting to around $38,481.
Ethereum (ETH): Ethereum’s market cap is $239 billion. It’s massive. Its price journey, mirroring the volatility pattern, moved from about $8 in April 2016 to approximately $2300 by January 2024. The peaks and troughs of Ethereum’s price underscore the fluctuating nature of the crypto market.
Tether (USDT): With a market cap of $74 billion, Tether is an excellent stablecoin. Its value is more consistent compared to other cryptocurrencies, thanks to the US dollar. Still, despite its intended stability, Tether has seen fluctuations.
Binance Coin (BNB): Starting under $0.10 at its launch in 2017, Binance Coin has shown significant growth. In July 2017, it reached a peak of around $484. Its value stands at $240 with a market cap of $37 billion, showcasing its potential as a formidable cryptocurrency.
Solana (SOL): Valued at around $75 by January 2024, Solana has come a long way. SOL has a market cap of $32 billion, and the coin is rapidly growing. It supports decentralized applications and smart contracts and is powered by a unique hybrid proof-of-stake and proof-of-history mechanism.
Ripple (XRP): XRP has a market cap of $24 billion. The Ripple network for facilitating different currency exchanges is excellent. Its price journey from $0.004 in early 2017 to $0.45 by January 2024 has put it on the map.
US Dollar Coin (USDC): USDC is a great stablecoin. It has a market cap of $20 billion. Pegged to the US dollar, it aims for a 1:1 ratio and is powered by Ethereum.
Cardano (ADA): Cardano has a market cap of $14 billion. It stands out for its early adoption of proof-of-stake validation. ADA powers its platform for smart contracts and decentralized applications.

Bitcoin’s resistance to frequent upgrades is good and bad – you can’t argue that it’s done fine without it. It’s top of the charts and always will be. But the issue is scalability and security, not how many people are buying it. Do you think Bitcoin should start upgrading?

Business

Where You Should Reinvest the Profits of Your Small Business

ByCFI.co Blogger

Profit reinvestment is imperative for the sustainable growth of small and medium-sized enterprises (SMEs) in the Philippines. Despite their humble beginnings, SMEs are pivotal players who drive innovation and development in the country’s business sector. For these businesses, reinvesting profits is a financial maneuver that requires foresight, strategy, and ambition. The adequate reinvestment of gains can transform modest origins into thriving commercial success stories. However, as a budding business owner, you may be presented with a unique set of challenges that require a particular set of skills and strategies.

shop

It is important to emphasize that this financial undertaking extends beyond allocating financial resources. It also demands a profound understanding of evolving consumer behaviors, market trends, and technological advancements. Hence, you must adopt a comprehensive approach to profit reinvestment to propel your business toward sustainable growth and to ensure resilience in a fiercely competitive market. If you’re wondering where to start with your profit reinvestments, here are some ideas that can help you:

Invest in Quality E-Commerce Platforms

The modern age requires every business to have a solid online presence. Investing in a high-quality e-commerce platform is a strategic move that can significantly enhance the reach of your growing business. This does not only entail setting up an online store but also ensuring that it’s optimized for user experience, mobile responsiveness, and seamless transactions. Your website is your digital storefront that is open 24/7, allowing you to tap into broader markets beyond the immediate area your business serves, thereby helping you maximize your sales.

Part of your e-commerce investment can go into adopting reliable online payment solutions. With Shopify Plugin from Maya Business, you can integrate the Shopify payment gateway Philippines’ top SMEs depend on. Having implemented a trusted payment gateway, Shopify site webmasters like you will be able to accept all types of contemporary payment methods, including debit and credit cards, e-wallets, and QR payments.

Upgrade Your Technological Infrastructure

Technological advancements are reshaping industries at an unprecedented pace, and for SMEs, staying competitive means staying on top of these changes. Boosting technological infrastructure is important for enhancing operational efficiency, improving customer service, and securing business data. This could involve investing in cloud computing services for better data management, adopting customer relationship management (CRM) systems to personalize customer interactions, or implementing cybersecurity measures to protect against digital threats. Such technological investments can lead to significant long-term benefits, like increased productivity and a more robust defense against tech-driven market disruptions.

Strengthen Employee Skills and Knowledge

Your employees are your most valuable assets, and investing in their development can yield substantial returns. Competition for skilled labor is often intense, so offering training and development opportunities can be a crucial differentiator that sets your business apart from rivals. This investment can take many forms, from professional development courses and workshops to attending industry conferences or even pursuing advanced certifications. Enhancing your team’s skills and knowledge can improve your business’s operational efficiency and facilitate a culture of continuous learning and innovation. This not only promotes employee retention but also ensures your business stays ahead of the curve in a rapidly evolving market.

Optimize Your Supply Chain Management

Efficient supply chain management is paramount for SMEs looking to reinvest profits effectively. This involves facilitating operations to reduce fulfillment costs and improving product delivery times, both of which will serve to enhance customer satisfaction. Consider implementing technologies that offer real-time tracking of inventory and shipments or renegotiating terms with suppliers for better rates or payment schedules. Look into ways to minimize waste and optimize logistics. An efficient supply chain cuts down on unnecessary costs and ensures a smoother, more reliable service to your customers. In a market where consumer expectations are constantly rising, a streamlined supply chain can be a significant competitive advantage and a worthwhile reinvestment of your profits.

Implement Advanced Analytics for Data-Driven Decisions

Data is often referred to as the new currency in the business world, which also holds true for the Philippines. Investing in advanced analytics tools and expertise can transform your business decision-making processes. By harnessing the power of data, you can gain deeper insights into customer behavior, market trends, and bottlenecks in operational efficiency. This enables you to make informed, data-driven decisions more likely to yield positive outcomes. Advanced analytics can uncover hidden opportunities and help you stay ahead of market shifts, giving your business a competitive edge in the Philippines’ ever-evolving business landscape.

Diversify Your Product or Service Offerings

Product diversification is another area in which you can reinvest the profits of your business. Expanding your range of products or services can help your business tap into new market segments and reduce your dependency on a few profitable products. However, diversification should be well-researched and aligned with market demands. Prior to reinvesting your gains in product expansion, conduct consumer and market studies to identify gaps or unmet needs and ensure that any new offerings align with your brand identity and customer expectations. Strategic diversification can catalyze long-term growth, giving your business a competitive edge in the diverse Philippine market.

Reinvest Your Profits Wisely to Seize Opportunities

The strategies you have explored in this article are your tools for charting this path. Yet, the real power lies within you—the entrepreneur with a vision, the determination, and the adaptability to thrive in a dynamic marketplace. It’s about seizing the reinvestment advantage, understanding that each peso reinvested is a stepping stone toward a brighter future for your small business. With each strategic move, you are shaping the future of your company and cementing your place in your industry.

Finance

Why Does Ethereum Hold So Much Promise for Crypto’s Future?

ByCFI.co Blogger

The world of finance changed forever when cryptocurrencies arrived on the scene. Powered by blockchain technology, these digital assets have transformed the way we think about transactions and payment processing.

Few cryptocurrencies generate as much excitement and interest as Ethereum. The asset is tipped to be the future of the sector. Why is this? Understanding the potential of Ethereum goes beyond studying the ETH price. Let’s find out more.

An Overview of Ethereum

To understand why so many people have pinned their hopes on Ethereum, let’s take a look at the history of the asset to understand where it came from.

Ethereum was designed by a team of developers, with the asset’s white paper published by Vitalik Buterin in 2013. It wasn’t until 2015 that the Ethereum blockchain went live, and it quickly garnered attention as an exciting new cryptocurrency in what was then an emerging sector.

Launched as an alternative to Bitcoin, which had dominated the crypto charts since hitting the market in 2009, Ethereum offered a number of technological benefits that set it apart from its great rival.

Ethereum quickly rose up through the charts and established itself as the second most popular and most valuable coin after Bitcoin. At the time of writing this article, Ethereum has a market cap of $304.36 billion and is trading at a value of $2,531.56, with growth of 63.75% over the past 12 months.

The crypto industry is forward-thinking and always looking for new ways to improve services. Below, we’ve listed some of Ethereum’s technical advantages that have made it one of the sector’s most popular assets.

Faster Payments

Bitcoin, and many other cryptocurrencies, serve purely as an alternative means of making payments. This is what crypto was initially designed to do, but developers soon realised the potential in blockchain technology and began harnessing it in different ways.

Ethereum is the perfect example of this. It is much more than just a payment system, although it can be used to make payments more efficiently than Bitcoin and other cryptocurrencies, a result of the technology that powers the asset.

The way it does this is through its consensus mechanism, the means through which transactions on the Ethereum blockchain are verified. Ethereum uses a system called proof of stake (PoS).

With this mechanism, fewer users are required to validate transactions, and the process is less energy-intensive. This means payments process much faster than other cryptocurrencies, making it more valuable as a payment system.

Environmental Considerations

The climate crisis is one of the most pressing issues facing the world today. You might assume that digital currencies like crypto have little impact on the environment, but that is incorrect.

Validating new blocks on blockchain networks requires huge amounts of energy. Powerful computers are used to process these verifications, which means that the crypto industry is a surprisingly significant contributor to carbon emissions.

Bitcoin in particular has been criticised for its environmental impact. According to research, Bitcoin’s carbon emissions, as a result of the power used for mining, are comparable to those of entire countries.

Ethereum, on the other hand, is far more environmentally friendly. The PoW consensus mechanism is less energy-intensive, reducing the asset’s impact on the climate.

As we head towards a greener future, environmentally friendly technologies like Ethereum will be extremely important. This is a key reason why Ethereum is considered to be the future of cryptocurrency.

Decentralised Apps and Smart Contracts

As we mentioned above, Ethereum can be used for more than payment processing and currency transactions.

The Ethereum blockchain is advanced and highly versatile; it can be used to develop and host decentralised apps (dApps) which are becoming increasingly popular across a range of industries, including healthcare, gaming, education and supply chain management.

These dApps are highly secure, and protected by the technology of the blockchain networks they are built on, offering improved levels of safety and privacy for users.

Another key attribute of the Ethereum blockchain is its scalability. As user traffic increases, the network can easily adapt to cope with spikes. This makes it the perfect platform for businesses and organisations looking to integrate blockchain technology with plans for future growth.

As well as dApps, the Ethereum blockchain can be used to implement smart contracts. These self-executing contracts are extremely valuable for businesses; they can streamline deals and ensure all parties are protected.

Smart contracts are written in code and guarantee the agreement is met. The best way to think about them is to compare them to a vending machine. Once you put the money in, the vending machine is bound to dispense whatever product you have purchased.

Conclusion

Cryptocurrency and blockchain are among the most exciting topics in the tech world today. They have been hailed as the next big thing in finance, and new developments have seen them revolutionise a number of other sectors. While Bitcoin is still the king of the crypto world, many feel it will soon fall by the wayside, with Ethereum poised to take its place. Ethereum has a number of advantages over rival coins, including superior technology and environmentally friendly systems, making it the perfect asset to take crypto into the future.

Budgeting

How Does a Credit Repair Agency Help Clients Improve Their Financial Health in the United Kingdom?

ByCFI.co Blogger

A healthy credit score is more important than ever. Your credit score affects your ability to secure loans, credit cards, mortgages, and even rent an apartment. In some cases, a poor credit score can prevent you from getting employment.

Unfortunately, many people in the United Kingdom and elsewhere struggle with damaged credit due to past financial missteps, leading to limited financial opportunities. This is where credit repair agencies come into play.

You might ask yourself, how does a credit repair agency in the UK improve a person’s financial health? These agencies can significantly benefit individuals seeking to recover their credit.

Understanding the UK Credit Landscape

Before delving into the role of credit repair agencies, it’s essential to understand the UK credit landscape. In the UK, credit scores typically range from 0 to 999, with higher scores indicating better creditworthiness. Credit reference agencies, such as Experian, Equifax, and TransUnion, compile credit reports based on an individual’s financial history, including credit card payments, loans, and other financial commitments.

A poor credit score can result from various factors, including missed payments, defaults, County Court Judgments (CCJs), and fraud. A low credit score can limit your access to credit, increase interest rates on loans, and even impact job prospects or rental applications.

How Credit Repair Agencies Work

Credit repair companies in the UK specialise in helping clients improve their credit scores and overall financial health. These agencies employ a range of strategies and tactics to achieve this goal:

Credit Report Analysis:
The first step in credit repair is a thorough analysis of the client’s credit report. Credit repair experts examine the report for inaccuracies, errors, or discrepancies that may be negatively impacting the client’s credit score.
Dispute Resolution:
Credit repair agencies work on behalf of their clients to dispute inaccurate or outdated information with credit reference agencies. They use legal and ethical methods to challenge negative entries, such as late payments or defaults, aiming to have them corrected or removed.
Negotiation with Creditors:
In cases where clients have legitimate financial obligations, repair agencies may negotiate with creditors to arrange more favourable terms. This can include debt settlements, payment plans, or even reduced interest rates.
Credit Building Strategies:
Credit repair companies provide guidance on how clients can build and maintain a positive credit history. This may involve setting up new lines of credit, using credit cards responsibly, and paying bills on time.
Education and Counseling:
A significant part of credit repair involves educating clients about responsible financial management. Credit repair agencies offer counselling and resources to help clients make informed financial decisions.
Monitoring Progress:
Agencies continuously monitor their clients’ credit reports and scores throughout the credit repair process. They track improvements and adjust strategies as necessary.

Benefits of Using a Credit Repair Agency

Now that we’ve discussed how credit repair companies, such as Credito operate, let’s explore the specific benefits clients in the UK can gain from enlisting their services:

Improved Credit Score:
The most obvious benefit is an improved credit score. A higher credit score opens doors to better financial opportunities, including lower interest rates on loans and credit cards.
Access to Credit:
With a better credit score, clients are more likely to qualify for loans and credit cards they may have been previously denied. This can be especially valuable for purchasing a home or starting a business.
Debt Resolution:
Credit rebuilding agencies can help clients negotiate with creditors and establish manageable payment plans, helping them get out of debt and regain control of their finances.
Financial Education:
Credit agencies don’t just fix credit scores; they empower clients with financial knowledge and skills that can prevent future credit issues.
Stress Reduction:
Financial stress can take a toll on one’s mental and emotional well-being. Credit repair can help alleviate this stress by resolving credit issues and offering solutions.
Faster Results:
Credit repair can be a time-consuming and complex process. Credit repair agencies have the expertise and experience to expedite the process, helping clients see results more quickly.

Choosing the Right Credit Repair Agency

While credit repair agencies can be beneficial, choosing the right one is essential. Here are some factors to consider when selecting a credit repair company in the UK:

Legitimacy:
Ensure that the agency is legitimate and complies with all relevant laws and regulations. Avoid agencies that make unrealistic promises or charge excessive fees upfront.
Reviews and Reputation:
Research the agency’s reputation by reading reviews and testimonials from past clients. A reputable agency should have a track record of success.
Cost:
Understand the agency’s pricing structure and fee arrangements. Be wary of agencies that require substantial upfront payments.
Transparency:
Look for an agency that communicates openly with clients and provides regular updates on progress.
Credentials:
Check if the agency’s employees are certified and trained in credit repair practices.

Credit repair agencies can be valuable allies for individuals in the United Kingdom seeking to improve their financial health by repairing their credit. These agencies leverage their expertise to correct errors, negotiate with creditors, and educate clients about responsible financial management.

By enlisting the services of a reputable credit repair organisation, individuals can work toward achieving a healthier credit score and gaining access to better financial opportunities. However, choosing an agency carefully is crucial, ensuring it operates ethically and transparently. Ultimately, a better credit score can lead to a brighter financial future and increased peace of mind.